Are cryptos becoming currencies?

Bitcoin showed peculiar behavior

The FED chairman Powell's speech at Jackson Hole was being followed by the whole financial world, and it had an impact on a number of assets, including Gold and Bitcoin.

  • The notable intraday spike was related to the dovish comments made by Powell.
  • Remarkably, Bitcoin behaved almost exactly as Gold.

Gold plays more than one role

Gold is considered as a peculiar asset class – a store of “real value” and an alternative currency.

  • The limited quantity of Gold available reduces any inflation – value of gold in terms of purchasing power have remained fairly stable across long periods of time.
  • Gold used to be the standard currency, at least until the Bretton Woods agreement, and remains for many as the main non-fiat alternative currency.

Is a newfound correlation there? What would be the implications?

Looking beyond intraday charts, it seems that Bitcoin and Gold have been correlating over the last few months, notably since the post-COVID monetary stimulus announcement.

  • Is Bitcoin simply starting to behave as a currency and responding to USD ebbs and flows?
  • Or is it taking the role of what some already dub as “digital Gold”?

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